Tata Chemicals consolidated income from operations for FY14 at Rs15,895 crore – Up by 8 percent
Declares 100% dividend of Rs10 per share
Mumbai: Tata Chemicals Limited (TCL), a global company with LIFE as its business — Living, Industrial and Farm Essentials reported a 8 percent jump in its income from operation at Rs15,895 crore.
Key performance and financial highlights:
Standalone
- Soda Ash demand continues to be robust.
- Fertiliser sales on expected lines.
- Consumer products business continues with its portfolio extension, growth in line with expectation.
- FOS trial production at Chennai plant started. Commercial output expected by Q2 FY15.
Consolidated
- European business restructuring on track. Winnington facility ceases production of Soda Ash on 3rd Feb 2014.
- Global soda ash demand stable and improving gradually.
- Rallis India Q4 net sales up by 16 percent to Rs324 Crs / PAT up by 71 percent at Rs19 Crs.
Key Provisions
Tata Chemicals Magadi Limited (TCML) – Impairment of fixed assets and goodwill amounting to Rs924 Crs. PAM plant under stress due to continued impact of high energy cost.
EPM – Rs180 Crs provided towards diminution in value of investment in view of significant decline in the share price as compared to the carrying value of the investment.
Tata Chemicals Europe – Restructuring cost provided towards closure of Winnington facility Rs242 Crs
Financial Highlights for the FY14:
Standalone FY14
- Income from Operations at Rs8690 Crs.
- Profit from Operations at Rs928 Crs.
- PBT at Rs569 Crs.
- PAT at Rs436 Crs.
- EPS at Rs17.12 (Annualised).
Consolidated FY14
- Income from Operations at Rs. 15895 Crs.
- Profit from Operations at Rs. 1809 Crs.
- PBT at Rs. (519) Crs.
- PAT after minority interest at Rs. (1032)Crs.
- EPS at Rs. (40.51) (Annualised).
Financial Highlights for the Q4 FY14:
Standalone FY14
- Income from Operations at Rs. 2006 Crs.
- Profit from Operations at Rs. 167 Crs.
- PBT at Rs. 96 Crs.
- PAT at Rs. 81 Crs.
- EPS at Rs. 3.19 (Not Annualised)
Consolidated FY14
- Income from Operations at Rs. 3695 Crs.
- Profit from Operations at Rs. 319 Crs.
- PBT at Rs. (1158) Crs.
- PAT after minority interest at Rs. (1226) Crs.
Commenting on the Company’s Q4 & FY14 performance, R Mukundan, managing director, Tata Chemicals, said:
“In the year under review, we have successfully implemented the process of restructuring the UK operations with closure of Winnington Soda Ash Plant. We expect to see the positive impact of the restructuring once the steam turbine project which is being implemented. This project is partly funded by the UK government.
In continuation of our agenda to ensure sustainability of all our operations, TCML has proposed mothballing of its Premium Ash (PAM) plant operations to help reduce its energy cost in order to continue manufacturing in Magadi. This decision follows a comprehensive review of alternatives over the last few years to improve plant performance, operating effectiveness and efficiencies including injection of additional investment and expertise. TCML has drawn out an extensive plan to cushion the impact of the restructuring exercise on its customers, employees and community at Magadi. This restructuring will help secure the future of TCML’s existing standard ash, CRS and Salt business.
Tata Chemicals soda ash business in India and North America performed on expected lines. In the Fertisilier business, subsidy outstanding at Rs1,802 Crs continues to drag performance and remains to be a challenge. However, the non-bulk farm business has performed well under the challenging circumstances and has grown to Rs2,408 Crs, a growth of 22 percent.
The Fertiliser business performance for the Q4 was also impacted due to restricted capacity utilization at Babrala due to lack of clarity on policy and gas cost reimbursement on the above cutoff production.
Consumer products business continues to grow and has reported its highest ever revenues having crossed Rs1,300 Crs during FY14, a growth of 11 percent. Expanding the water purifier portfolio, during the quarter, Tata Swach Silver RO variant was launched in Kolkata and is well received in the market; it is being extended to other parts of India in a phased manner.
Our focus on reshaping the portfolio to enhance share of consumer product business and non-subsidized farm inputs business will continue in the coming years.”
Businesswise performance
Living essentials
- TCL salt franchisee - market leader in the national branded salt segment. Salt demand growing at a steady pace.
- Encouraging growth in pulses and water purifier sales.
- Tata salt’s ‘Maine Desh Ka Namak Khaya Hain’ campaign received encouraging response. TVC received 7.3 Lacs views.
- Tata Swach RO variant launched in Kolkata and is well received in the market.
Industry essentials
- Global Soda Ash demand remained stable and early signs of improvement. Likely to grow at about 1.5 percent per annum.
- Domestic Soda Ash demand stable.
- Soda ash demand in Europe showing early signs of recovery.
- Magadi SAM volumes improving compared to previous year.
- Production at Tata Chemicals North America on expected lines.
- Demand expected to pick up with recovery in housing and automobile sector recovery.
- Sodium Bicarbonate demand in India stable.
Farm essentials
- Urea production / sales in line with expectation.
- Neem coated urea accounted for 35 percent of total urea production for the year.
- SSP production in line with expectation.
- Rallis registered 71 percent growth in net profit in Q4.
- IMACID production impacted on account of cold shutdown and rough weather condition at port.